Source: Prospect sells Step Aside lithium project for up to US$2,2 mln – herald
Business Reporter
Mineral explorer, Prospect Resources Limited, has executed a share sale and purchase agreement to offload its Step Aside Lithium Project in Zimbabwe for US$2,2 million.
The Step Aside Lithium Project is located in Zimbabwe, about 35 km east of Harare, and roughly 8 km north of the Arcadia Lithium Mine. It lies within the Harare Greenstone Belt and covers approximately 100 hectares.
The buyer is Fatima Resources Pty Ltd, a private company reported to have extensive local operational experience. The transaction involves the sale of Prospect’s Singapore-registered subsidiary, Promin Resource Holdings Pte Ltd, which holds a 90 percent interest in the Step Aside Project.
The agreement structure ensures an immediate cash injection for the company. Prospect will receive an initial upfront payment of US$850 000, with a further US$150 000 due six months after the transaction’s completion.
A significant final payment of up to US$1,2 million is conditional, contingent upon the buyer achieving specific development milestones within 24 months, such as securing binding offtake agreements or successfully upgrading the Project’s Mineral Resource.
The sale marks a crucial strategic pivot for Prospect, which developed Step Aside through exploration drilling between 2022 and 2024 before the decline in global lithium prices.
The company is now focusing its resources entirely toward the larger Mumbezhi Copper Project opportunity in northern Zambia. Management noted the sale also serves to simplify the corporate structure and reduce ongoing overhead costs.
Sam Hosack, Prospect’s managing director and CEO, commented that the deal provides both “upfront cash return and future upside to subsequent exploration success.”
““We are satisfied with the outcome of this sale agreement with a reputable company with extensive operating experience in Zimbabwe. This transaction offers us both upfront cash return and future upside to subsequent exploration success and value growth at Step Aside.
“The lithium opportunity at Step Aside showed classic spodumene bearing lithium mineralisation.
In particular, the identification of a co-joined mineralised pegmatite system that remains open in multiple directions and at depth. This system justifies further drill testing, which is planned by the Buyer.
“We believe the future stewardship of Step Aside is in good hands and look forward to seeing just
how far the project can continue to grow, while we focus on the very exciting Mumbezhi Copper Project in Zambia. In the meantime, we are pleased to see a simplification of our corporate structure to assist in reducing ongoing overhead costs,” said Mr Hosack.
Proceeds from the sale will be channelled directly into advancing ongoing exploration activities at Mumbezhi, including a Phase 2 drilling programme, and evaluating other copper opportunities within Zambia.
The post Prospect sells Step Aside lithium project for up to US$2,2 mln appeared first on Zimbabwe Situation.